Revenue and Income - Net revenue for Sleep and Breathing Health products reached $1,125,593 thousand in Q2 2024, a 10.6% increase from $1,017,855 thousand in Q2 2023[11] - Total net revenue for the six months ended December 31, 2024, was $2,506,598 thousand, up 10.7% from $2,265,122 thousand in the same period last year[11] - The company reported a net income of $344,622 thousand for Q2 2024, a 64.9% increase from $208,800 thousand in Q2 2023[11] - Net income for the six months ended December 31, 2024, was $655,977 thousand, compared to $428,222 thousand for the same period in 2023, representing a 53% increase[22] - Total revenue for the six months ended December 31, 2024, was $2,506,598 thousand, up from $2,265,122 thousand in 2023, reflecting an 11% growth[31] - Revenue from the Sleep and Breathing Health segment for the six months ended December 31, 2024, was $2,193,330 thousand, compared to $1,980,892 thousand in 2023, indicating a 11% increase[31] - Net revenue for the three months ended December 31, 2024, was $1.3 billion, an increase of 10% compared to the same period in 2023[130] - Net revenue from the Sleep and Breathing Health business for the three months ended December 31, 2024, was $1,125.6 million, an increase of 11% compared to the same period in 2023[134] Earnings and Profitability - Basic earnings per share for Q2 2024 were $2.35, up from $1.42 in Q2 2023, representing a 65.5% increase[11] - Diluted earnings per share for the six months ended December 31, 2024, was $4.45, compared to $2.90 for the same period in 2023, indicating a 53% increase[88] - For the three months ended December 31, 2024, net income was $344,622 thousand, compared to $208,800 thousand for the same period in 2023, representing a year-over-year increase of 65%[88] - Diluted earnings per share for the three months ended December 31, 2024, was $2.34, compared to $1.42 for the same period in 2023[130] - Gross profit for the three months ended December 31, 2024, was $751,275 thousand, compared to $646,934 thousand in Q2 2023, reflecting a 16.1% increase[11] - Gross margin for the three months ended December 31, 2024, was 58.6%, up from 55.6% in the same period in 2023[130] Expenses and Investments - Research and development expenses for the six months ended December 31, 2024, were $160,897 thousand, up from $149,590 thousand in the same period last year, reflecting a 7.5% increase[11] - Research and development investment during the three months ended December 31, 2024, was $81.4 million, representing 6.3% of net revenues[128] - Selling, general, and administrative expenses for the three months ended December 31, 2024, were $241.6 million, an increase of 9% from $222.2 million in the same period of 2023[155] - Selling, general, and administrative expenses for the six months ended December 31, 2024, totaled $480.6 million, an 8% increase from $445.0 million in the prior year[158] Assets and Liabilities - Total assets increased to $7,141,334 thousand as of December 31, 2024, compared to $6,872,394 thousand as of June 30, 2024, marking a 3.9% growth[8] - Total liabilities decreased to $1,888,325 thousand as of December 31, 2024, down from $2,008,351 thousand as of June 30, 2024, a reduction of 5.9%[8] - The company’s total stockholders' equity increased to $5,253,009 thousand as of December 31, 2024, compared to $4,864,043 thousand as of June 30, 2024, a growth of 8.0%[8] - Total inventories as of December 31, 2024, amounted to $882,103 thousand, an increase from $822,250 thousand as of June 30, 2024[55] Cash Flow and Liquidity - Cash and cash equivalents at the end of the period were $521,944 thousand, up from $210,247 thousand at the end of December 2023[22] - The company reported a net cash provided by operating activities of $634,161 thousand for the six months ended December 31, 2024, compared to $559,115 thousand in 2023, a 13% increase[22] - Cash provided by operating activities for the six months ended December 31, 2024, was $634.2 million, an increase of $75.0 million compared to $559.1 million in 2023[194] - Cash used in investing activities decreased to $34.5 million for the six months ended December 31, 2024, from $190.1 million in 2023, a reduction of $155.6 million[196] - Cash used in financing activities was $298.3 million for the six months ended December 31, 2024, down from $390.1 million in 2023, indicating improved cash management[197] - As of December 31, 2024, the company had $1,500.0 million available under the revolving credit facility, contributing to a total liquidity of $2,021.9 million[187] Segment Performance - The company operates in two segments: Sleep and Breathing Health and Residential Care Software, with performance evaluated based on net revenues and income from operations[48] - Residential Care Software segment net revenue for the six months ended December 31, 2024, was $313,268 thousand, up 10.2% from $284,230 thousand in the prior year[53] - Net revenue in the U.S., Canada, and Latin America for the three months ended December 31, 2024, increased to $748.9 million, up 12% from $669.3 million in the same period of 2023[135] Debt and Financing - The total debt as of December 31, 2024, was $672.8 million, down from $707.2 million as of June 30, 2024[72] - The company has a senior unsecured revolving credit facility of $1,500.0 million, with an option to increase it by an additional amount equal to the greater of $1,000.0 million or 1.0 times the EBITDA for the trailing twelve-month measurement period[73] - As of December 31, 2024, the company had $675.0 million outstanding under its Revolving Credit Agreement, Term Credit Agreement, and Senior Notes[83] Legal and Regulatory Matters - The company is involved in ongoing patent litigation, with a significant case against New York University regarding patent infringement, which is expected to be resolved by March 2025[90] - The company has filed for reexamination of U.S. Patent Nos. 11,375,921 and 11,786,680, with the Patent Office ordering reexamination on November 15, 2024, and December 3, 2024, respectively[96] Other Financial Metrics - The effective income tax rate for the three months ended December 31, 2024, was 17.6%, down from 19.5% for the same period in 2023[171] - Total other income for the three months ended December 31, 2024, was $1.1 million, a recovery from a loss of $15.6 million in the same period of 2023[168]

分组1 - ResMed reported quarterly earnings of $2.43 per share, exceeding the Zacks Consensus Estimate of $2.30 per share, and up from $1.88 per share a year ago, representing an earnings surprise of 5.65% [1] - The company achieved revenues of $1.28 billion for the quarter ended December 2024, surpassing the Zacks Consensus Estimate by 1.57%, and an increase from $1.16 billion year-over-year [2] - ResMed has consistently surpassed consensus EPS estimates and revenue estimates over the last four quarters [2] 分组2 - The stock has gained approximately 10.6% since the beginning of the year, outperforming the S&P 500's gain of 2.7% [3] - The company's earnings outlook is crucial for investors, with current consensus EPS estimates at $2.37 for the coming quarter and $9.35 for the current fiscal year [7] - The Zacks Industry Rank indicates that the Medical - Products sector is in the bottom 48% of over 250 Zacks industries, which may impact stock performance [8] 分组3 - The estimate revisions trend for ResMed is currently favorable, resulting in a Zacks Rank 2 (Buy) for the stock, suggesting expected outperformance in the near future [6] - Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions, which can be tracked by investors [5]

Financial Performance - Revenue for the second quarter of fiscal year 2025 increased by 10% year-over-year to $1.3 billion, with a constant currency growth of 10%[4] - Gross margin improved by 300 basis points to 58.6%, while non-GAAP gross margin increased by 230 basis points to 59.2%[4] - Operating cash flow for the quarter was $309 million, with net income of $345 million, representing a 65% increase year-over-year[4] - Diluted earnings per share rose to $2.34, a 65% increase compared to the prior year, while non-GAAP diluted earnings per share increased by 29% to $2.43[4] - Net income for the first six months of fiscal year 2025 was $656 million, a 53% increase from the same period last year[5] - Net income for Q2 2024 was $344,622, representing a 65.0% increase compared to $208,800 in Q2 2023[16] - Basic earnings per share for Q2 2024 increased to $2.35, up from $1.42 in Q2 2023, reflecting a 65.5% growth[16] - GAAP net income for the three months ended December 31, 2024, was $344.6 million, up from $208.8 million in the same period of 2023, representing a 65% increase[25] - Non-GAAP diluted earnings per share for the six months ended December 31, 2024, was $4.63, compared to $3.51 for the same period in 2023, indicating a 32% increase[25] - Total revenue for the six months ended December 31, 2024, was $2,506.6 million, a 11% increase from $2,265.1 million in 2023[31] Revenue Growth - Revenue in the U.S., Canada, and Latin America, excluding Residential Care Software, grew by 12%[6] - Total revenue from devices in the U.S., Canada, and Latin America for the three months ended December 31, 2024, was $414.5 million, a 12% increase from $371.3 million in 2023[28] - Total revenue from masks and other products in the same region for the three months ended December 31, 2024, was $334.5 million, also a 12% increase from $298.0 million in 2023[28] - Total revenue from combined Europe, Asia, and other markets for the three months ended December 31, 2024, was $376.6 million, an 8% increase from $348.5 million in 2023[28] - Total Sleep and Breathing Health revenue for the three months ended December 31, 2024, was $1,125.6 million, an 11% increase from $1,017.9 million in 2023[28] Expenses and Investments - Selling, general, and administrative expenses increased by 9% year-over-year, but improved to 18.8% of revenue compared to 19.1% in the prior year[9] - Research and development expenses for Q2 2024 were $81,372, a 10.1% increase from $73,880 in Q2 2023[16] - The company plans to continue investing in new product development and market expansion strategies to drive future growth[20] Cash and Assets - Cash and cash equivalents at the end of Q2 2024 were $521,944, significantly higher than $238,361 at the end of June 2024[19] - Total assets increased to $7,141,334 as of December 31, 2024, compared to $6,872,394 as of June 30, 2024[19] - Total liabilities decreased to $1,888,325 from $2,008,351, indicating improved financial health[19] Dividends and Shareholder Returns - The board declared a quarterly cash dividend of $0.53 per share, payable on March 20, 2025[10] Product Launches - The company announced the launch of the Kontor Head Strap, a premium accessory for Apple Vision Pro, enhancing user experience[9]

Core Insights - ResMed reported a strong second quarter for fiscal year 2025, with a 10% year-over-year revenue growth driven by increased demand for sleep health and breathing health products, as well as digital health solutions [2][4][5] - The company achieved a gross margin improvement of 230 basis points, reaching 59.2% on a non-GAAP basis, and a significant increase in operating income by 52% [3][5][8] - ResMed's operating cash flow for the quarter was $309 million, reflecting robust financial health and operational efficiency [4][5] Financial Performance - Revenue for the quarter ended December 31, 2024, was $1,282.1 million, compared to $1,162.8 million in the prior year, marking a 10% increase [3][5][24] - Gross margin improved to 58.6%, up from 55.6% year-over-year, while non-GAAP gross margin rose to 59.2% from 56.9% [3][5][24] - Net income for the quarter was $344.6 million, a 65% increase from $208.8 million in the same period last year, with diluted earnings per share rising to $2.34 from $1.42 [3][5][24] Operational Highlights - The company launched the Kontor Head Strap, a premium accessory for Apple Vision Pro, enhancing user experience and comfort [7][9] - ResMed's ecosystem in connected digital health is positioned to capitalize on emerging opportunities, particularly with the rise of consumer wearables and GLP-1 therapies [2][4] - The company continues to focus on operational excellence, which has contributed to margin expansion and strong cash flow generation [2][4] Regional Performance - Revenue in the U.S., Canada, and Latin America grew by 12%, while Europe, Asia, and other markets saw an 8% increase on a constant currency basis [8][24] - The Residential Care Software segment also experienced an 8% revenue increase, indicating solid organic growth [8][24] Dividend and Shareholder Returns - ResMed declared a quarterly cash dividend of $0.53 per share, payable on March 20, 2025, reflecting the company's commitment to returning value to shareholders [10]

Core Viewpoint - ResMed plans to release its financial and operational results for the second quarter of fiscal year 2025 on January 30, 2025, after the market closes, followed by a management webcast to discuss the results and other relevant information [1]. Group 1 - The earnings webcast will take place at 1:30 p.m. PST / 4:30 p.m. EST on January 30, 2025, with international times provided for London and Sydney [1]. - A replay of the earnings webcast will be available on ResMed's website approximately two hours after the live event, with a phone replay accessible from January 30, 2025, until February 13, 2025 [2]. - ResMed focuses on innovative solutions for chronic diseases, including sleep apnea and COPD, and operates in over 140 countries, aiming to improve quality of life and reduce healthcare costs [2].

Core Insights - ResMed will present at the 43rd Annual J.P. Morgan Healthcare Conference on January 13, 2025, at 3:00 p.m. PST in San Francisco, CA, featuring CEO Mick Farrell and CMO Dr. Carlos Nunez [1] Company Overview - ResMed is focused on pioneering innovative solutions that treat chronic diseases, aiming to keep patients out of hospitals and improve their quality of life [3] - The company offers digital health technologies and cloud-connected medical devices for conditions such as sleep apnea and COPD, supporting care in over 140 countries [3] - ResMed's comprehensive out-of-hospital software platforms assist healthcare professionals and caregivers in managing patient health at home or in preferred care settings [3]

Core Viewpoint - ResMed Inc. has demonstrated strong momentum with a 37.8% increase in share price over the past year, outperforming the industry growth of 10.7% and the S&P 500's 26.2% increase, indicating solid investment potential for the company [1]. Company Overview - ResMed designs, manufactures, and distributes generators, masks, and related accessories for the treatment of sleep-disordered breathing and other respiratory disorders, operating under two segments: Sleep and Respiratory Care and Software-as-a-Service (SaaS) [2][3]. Growth Factors - The upward trend in ResMed's share price is driven by robust mask sales, strong respiratory care product performance, and a focus on international expansion, supported by a solid fiscal first-quarter performance [4]. - Investor optimism is bolstered by the launch of new patient-centric products, including the AirTouch N30i fabric mask, enhancing the therapy journey for sleep apnea patients [5]. - ResMed reported impressive fiscal first-quarter results, with significant year-over-year revenue growth across all product and geographic categories, aided by new patient activations and ongoing ReSupply programs [6]. Financial Performance - In the fiscal first quarter, ResMed achieved an adjusted gross profit of $724.9 million, a 17.5% year-over-year increase, with gross margin improving by 324 basis points to 59.2% [7]. - Adjusted operating income rose to $406.4 million, reflecting a 27.7% increase from the previous year, with the adjusted operating margin expanding by 431 basis points to 33.2% [7]. Future Estimates - ResMed's earnings per share (EPS) for fiscal 2025 are projected to grow by 21.1% to $9.35, with revenues expected to rise by 8.9% to $5.10 billion year-over-year [10].

Core Insights - The article discusses the Zacks Style Scores, which are designed to help investors identify stocks with the best chances of outperforming the market over the next 30 days [7][11]. Group 1: Zacks Style Scores Overview - Each stock is rated from A to F based on value, growth, and momentum characteristics, with A being the highest rating [2]. - The Value Style Score focuses on identifying attractive and discounted stocks using various financial ratios like P/E and Price/Sales [3]. - The Growth Style Score evaluates a company's financial strength and future outlook, analyzing projected and historical earnings, sales, and cash flow [8]. - The Momentum Style Score helps investors capitalize on price trends by assessing factors like one-week price change and monthly earnings estimate changes [18]. Group 2: Zacks Rank and Performance - The Zacks Rank utilizes earnings estimate revisions to assist investors in building successful portfolios, with 1 (Strong Buy) stocks achieving an average annual return of +25.41% since 1988, significantly outperforming the S&P 500 [10][19]. - Stocks with a Zacks Rank of 1 or 2 and Style Scores of A or B are recommended for maximizing investment success [20]. - ResMed, Inc. (RMD) is highlighted as a stock to watch, holding a 2 (Buy) rating and a VGM Score of A, indicating strong potential [22]. Group 3: ResMed (RMD) Specifics - ResMed has a Value Style Score of B, supported by a forward P/E ratio of 24.93, making it attractive to value investors [14]. - Recent analyst activity shows two upward revisions in earnings estimates for fiscal 2025, with the Zacks Consensus Estimate increasing by $0.13 to $9.35 per share [23]. - ResMed has an average earnings surprise of 6.4%, indicating a positive trend in earnings performance [23].

Core Insights - The FDA approved Eli Lilly's weight-loss drug Zepbound for treating moderate-to-severe obstructive sleep apnea in adults with obesity, raising concerns for companies like ResMed and Inspire Medical Systems that currently provide treatment devices [6][4] - ResMed's Chief Medical Officer indicated that weight-loss medications could be used alongside existing therapies, suggesting a potential shift in treatment approaches for sleep apnea [4][6] - Despite a recent decline in stock prices, ResMed shares have increased by approximately 33% this year, while Inspire Medical Systems shares have decreased by 9% in 2024 [6][4] Company Impact - ResMed's shares fell about 4% following the FDA's decision, but the company has seen significant growth in stock value this year [6][4] - Inspire Medical Systems experienced a 1.4% drop in shares, reflecting investor concerns about competition from new weight-loss drugs [6][4] - Analysts show mixed ratings for both companies, with ResMed receiving three "buy" and four "hold" ratings, while Inspire Medical Systems has seven "buy" and two "hold" ratings [6][4]

Growth stocks are attractive to many investors, as above-average financial growth helps these stocks easily grab the market's attention and produce exceptional returns. But finding a great growth stock is not easy at all.That's because, these stocks usually carry above-average risk and volatility. In fact, betting on a stock for which the growth story is actually over or nearing its end could lead to significant loss.However, the Zacks Growth Style Score (part of the Zacks Style Scores system), which looks ...